Ingenieur Vol 63 Ingenieur Vol 63 2015 | Page 13

ƒ High Impact Research Programme: The Ministry created this initiative to make Universiti Malaya (UM) one of the world’s best research universities; Collaboration (MyLAB): MyLAB focuses on four sectors— nanotechnology, biotechnology, automotive and aerospace—which are driven by collaboration between researchers in HLIs and industry players. EXHIBIT 7-4 Comparison of gross domestic expenditure on R&D by funding sources Financed by government Financed by business enterprise Others2 Gross domestic expenditures of R&D (GERD) as percentage of GDP1 2012; % 1.01 1 South Korea 2 Israel 3 Finland 0.95 4 Sweden 0.94 5 Japan 6 Denmark 0.86 7 Germany 0.87 8 Austria 9 Slovenia 10 United States ・ ・ ・ Malaysia 32 0.48 2.98 0.06 4.04 1.44 0.56 0.36 3.55 1.95 0.51 2.59 1.15 3.93 2.01 2.24 1.79 1.92 25% 12% 27% 3.41 28% 0.24 3.39 16% 0.32 2.98 29% 0.13 2.92 30% 0.45 2.84 40% 1.76 0.25 2.80 28% 0.86 1.65 ・ ・ ・ 0.44 0.59 0.04 1.07 0.28 2.79 31% 0.79 1.24 Proportion of GERD financed by government 41% 1 Data used for South Korea and Japan is from 2011, due to data availability. Switzerland is not in the list since it has GERD 2.87% of GDP, but no recent data available 2 “Others” mainly refers to funding sources from abroad SOURCE: United Nations Educational, Scientific and Cultural Organization (UNESCO) Institute for Statistics several universities will come out with their solutions, and the specific company will decide which one is feasible. Most are technical solutions via application of technology. He adds that the response to PPRN has been encouraging as Government plays a role in financing the search for solutions. Based on the size of the company, there is a RM50,000 Matching Grant where small enterprises pay as little as 10% while bigger companies foot out a larger portion at 50%. For more sophisticated research and commercialisation, university and private sector collaboration is also gaining more traction. The push factor is a Government incentive of 7% tax deduction for private companies. Dato’ Seri Zaini discloses that multinational companies such as Huawei Technologies Co Ltd and Carrier Corporation have taken advantage of this and house their research facilities at the universities. The companies utilise academia expertise and university research facilities, as well as enable lecturers to conduct research and upgrade their qualifications. Enhancing public-private collaboration in R & D and TVET will certainly contribute to capacity building of Malaysia’s human capital. This is part of the transformation of the higher education system that has been planned in the 11-year MEB. Malaysia now ranks number 52 in the Human Capital Index 2015 covering 124 countries by the World Economic Forum. It needs to move up the ladder because human capital will be the key factor linking innovation, competitiveness and growth in the 21st century. 11